A London-based courier company has saved £1.9m by switching to electric vans, cutting its costs and carbon footprint.
SBL Couriers, whose clients include Parcelforce and Amazon, runs a 600-strong van fleet and has already switched more than 200 vehicles to a variety of Mercedes-Benz eVitos and eSprinters.
It’s now working to shift the remainder of the fleet to EVs, slashing the firm’s emissions while also cutting fuel costs and being exempt the capital’s recently expanded Ultra Low Emission Zone (ULEZ).
Jodelle Silva, CEO of SBL Couriers, said the switch to an electric fleet was bringing benefits across the board.
He commented: “With this one decision we’ve already saved £1.9m as a business. And once we convert the entire fleet of 600, we’re on track to save another £2.9m – that’s almost £5m in total. It’s no surprise that we’ve started encouraging many other delivery service partners to make the switch to electric vehicles.
“While the upfront cost of electric vehicles can be higher, they often have lower operating costs; electricity is generally cheaper than petrol or diesel on a per-mile basis, and electric vehicles require less maintenance, so we’ve consistently been making savings.”
Silva added that 90% of the savings made by the EV fleet are passed back onto drivers, giving the company an unbeatable employee retention rate.
He elaborated: “All SBL drivers are subcontractors, so fuel allowance gets passed back to them via any self-billing invoices they send to us. Discounted rental is also charged on the electric vehicles, and they receive client reimbursement for any congestion charges they accrue.”
Silva, who founded the business in Acton in 2012, also explained that the switch to electric was inspired not only by the financial savings but by customers’ shifting expectations around sustainability. And he urged other businesses to follow his lead.
“We knew that our clients, particularly those who prioritise sustainability, appreciated those that make environmentally responsible choices – some even reimbursing us for business miles in a bid to push towards their own net zero goals; it certainly pays to align to customers’ values wherever possible.
“As a big carbon contributor, the delivery industry has to bite the bullet and do what it can to reduce its footprint. For us, that came in the form of an eVan overhaul.”
The next step will be to insure the company on an electric fleet policy. Silva said these are comparatively cheap and will enable SBL’s drivers to benefit from lower weekly expenses.
The company also continues to roll out other eco initiatives to help become greener.
Silva added: “Our new fleet of electric vans has inspired us, and we’re keen to channel that sustainability momentum into other areas of the business. To start, we’re looking at how we can go electric across our entire supply chain – from shipments at ports or hubs, to last-mile delivery. It’s no mean feat, but we’re committed to the task – and we’ve already made steps in the right direction, with the adoption of new electric forklift trucks at our distribution centres.”
SBL is also in the process of installing solar panels at its facilities to power the 12 electric vehicle charging units installed at the site. And the company is collaborating with a partner organisation to raise money for tree-planting initiatives.
“There’s a lot happening here at SBL and all of these different strands within the business will hopefully lead us to a point where we can set the standard for sustainability in the logistics industry. And we want other businesses to follow suit – not just to help the planet, but to help their pockets.”
